Entrepreneurial entry thresholds
AbstractMuch of prior research recognizes that entry into entrepreneurship involves a comparison of expected economic returns in a venture to some threshold level of acceptable performance. Despite this recognition, theory commonly focuses on drivers of economic returns at the exclusion of threshold drivers. Moreover, typical empirical investigations of entry provide little insight into whether determinants influence expected returns, the required threshold, or both. Drawing from the Panel Study of Entrepreneurial Dynamics, we apply an empirical approach new to the entrepreneurial entry literature to investigate the drivers of both expected performance and the unobserved threshold, providing greater insight into the specific causal role of entry determinants.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 84 (2012)
Issue (Month): 3 ()
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Thresholds; Nascent entrepreneurs; Expectations; Entry;
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
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